WLB in VC is insane
Currently interning at a European VC. These people’s lives are so chill
Culture is amazing, team goes on an expensed trip together every quarter. Everyone is nice and supportive.
Analysts work like 30 hours a week, and that work is very interesting stuff where you meet a lot of founders
Pay isn’t the highest, but they get carry and it’s in Europe so they get a ton of social welfare
Why don’t more people exit to VC?
Because there are so few jobs at the junior levels. Also because like you said, pay isn’t the highest. People are willing to work double those hours for 2.5x the pay.
Pay is low, work is not as intellectually stimulating as IB -even IB is mind numbing most of the time in junior levels, and it is hard to get promoted - the route to partner from an analyst is almost impossible
Then how do people make partner?
Typically partners are successful ex-entrepreneurs or ex-something
“VC isn’t as intellectually stimulating as IB” lol that’s got to be a joke right? IB was interesting maybe the first 3 months when there is a lot of new stuff to learn and now almost a year in I’m bored out of my mind making up numbers for a model to “look right” and formatting slide after slide, etc etc. IB is only interesting when you’re out doing client visits and actually need to have a pulse in these discussions.
In VC although the majority of founders still come from the same background you more likely than not get to meet people off the beaten path who take risks and offer a lot to learn from. As a junior, depending on how your fund works you can be a board observer at the companies you source/invest in etc actually listening to the problems that may arise over the life of your investment that doesn’t stop us once a deal closes.
On the pay depends on the fund but what I’ve seen TC is 175k to 200 at junior role. With the better WLB doesn’t seem like a bad trade off for a job that’s not real
Anyways depends on what gives you energy modeling & making PIBs with the occasional client interaction or networking at tech events and sourcing deals. Also like others mentioned it’s super hard to get into given few spots available (low turnover and I wonder why)
Because you are stupid enough to not be able to land a job in IB, so a stupid guy like youshould work in a shitshow like VC. Got it snowy?
in our VC unit
- you meet interesting people and founders, it is a very "social" environment and you get to expand your network
- you can leverage offers from startups, if they like you
- pay is acceptable, but not that high
- exit opps aren't the same as in a BB or larger scale environment
- VC units tend to be smaller in most cases
- less variety in deals and structures (they have their themes, ticket sizes, stages, etc set)
- unless you are part of a CVC/incubator/accelerator, it really isn't that interesting?
VC has a lot of great things going for it but since you asked...
It's hard to get into, harder than PE (arguably) because of how few spots
It pays not great - Probably wouldn't be surprised if quite a few tech firms/start ups payed the same and VC is still in the "high finance" (ish) category so should command a premium but it doesn't - this discount continues throughout career, again wouldn't be surprised if tech stock options worth more in long run
Hour glass shaped headcount - lot of juniors, lot of partners, not much room in the middle and if you've self selected into VC, most are gonna want to push up the ranks, sure some will leave but progression is diff dynamic to IBD
Also, some would say its not a "real job", a lot of your "job" is just hustling to get in front of random entrepreneurs and praying one makes it big, so many of the firms you back will fail, do you really believe in the blockchain umbrella company you gave $25m to?? didn't think so... - there are tons of threads on this site questioning WTF even is VC
Sure you get carry but less bps allocation, fund size is smaller so bps allocation worth less and firms you back have a higher risk of blowing up so expected value of carry is also worth less
You're giving money, anyone can do that, but not offering to take a controlling stake (this is what PE does which fewer firms can offer hence differentiating), so differentiating between VCs (seems as an outsider) to be based on who is "nice" to you and makes you feel like their buddy
Again generalizing but you're often jerking off to TAM figures and ignoring the fact the firm is losing $50m in cash every year because you believe in the "growth story", this has merit in cases but many have argued this is fundamentally flawed as a philosophy for investing
I thought VC's generally took a good chunk of equity for their investments though, as well as some control. I could be wrong though.
Yeah typically at the VC I’m at we take 10%-25% and get a board seat
Good chunk in terms of % of the firm, sure. But the actual sums are low. Great you took 25% for $50m... given how much dry powder there is, that is just pocket change so many many firms, family offices etc. who can do this hence hard to differentiate
Cuz with the shotgun mentality, any monkeys can choose 100 startups out of 50 startups to throw money too.
Excess of dry powder which means even the shittiest startups with any blockchain/AI in its business gets funding
Agree with alot of the points in this thread. Generally, there is a larger disparity between top VCs and mid VCs than top PEs and mid PEs in London. I wouldn't want to work for an average VC partner in London as from conversations don't think they offer that much insight and expertise.
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